Sales & Operations Planning: Your Best Investment
The recent disruptions in the global supply chains have confirmed more than ever how important it is to have a robust integrated demand forecast and supply plan. The right S&OP program puts your supply chain in the position to see changes faster than others, and have a supply plan in place to better absorb the disruptions. There is a common misconception that S&OP is only for large organizations, but the truth is the intent and value behind the S&OP concept can, and should, be adopted by companies from the start.
An organization’s Sales & Operations Planning (S&OP) process is the heartbeat of any successful product supply operation. Those who do it well, set themselves up to consistently deliver to their customers while minimizing excess inventory - finding that balance between customer service levels and working capital. Those who have not yet mastered it, are at risk of missing out on valuable sales opportunities due to product availability or of being left with costly excess and obsolete inventory.
The concept seems so simple and elementary - aligning your demand forecast with your supply plans - yet so few truly realize the value that comes with a robust S&OP process, and fail to dedicate the time that it deserves. Vital Link will help your cross functional teams understand their role in the process, and why they should want to invest their time in support of proper S&OP.
S&OP Implementation / optimization
It is never too soon to implement your company’s S&OP process. By the time you realize you’re in need of it, you’ve likely already suffered unnecessary pain. Vital Link will enable you to get the process off the ground faster and more effectively through training, tool development, operating principles, establishing roles/responsibilities/meeting cadences, and much more. We will ensure the design and implementation is done in a way that fits cleanly within your teams capabilities, and we’ll stay with you as long as it takes to make sure it’s success is sustained!
Do you already have a process in place, but feel you’re still having supply outages or carrying far too much inventory? Vital Link will assess your current process and work across all functions and levels of your organization to put the right changes in place to begin resolving those concerns.
Supply chain planning principles
The effort isn’t over once you have a mature and effective S&OP process in place. Your business and supply chain are constantly changing, and so must your planning principles from which you are supporting the demand. Vital Link will bring a fresh set of eyes to identify improvement opportunities in how you are planning your supply and managing your inventory. We will examine all key dynamics of your portfolio to determine the best principles, including:
Demand volatility & promotional activity
Lead times
Minimum order quantities
Supplier performance & supply risks
COGS
